What market is for newly issued and underwritten securities that have never been offered to the public?

Prepare for the CSI Investment Funds in Canada exam with flashcards and multiple choice questions. Gain insights through hints and explanations for a successful exam experience!

The main idea here is where securities are issued to investors for the first time. New, underwritten securities that haven’t been offered to the public yet are sold in the primary market. In this market, the issuer partners with underwriters to price and distribute the new issue, and the funds raised go to the issuer. After issuance, those securities may trade among investors in the secondary market.

The secondary market handles trading of securities that have already been issued. An open-end fund refers to a mutual fund whose shares are bought and sold from the fund itself, not through a new initial public offering of a security. The over-the-counter market is a trading venue that can include various securities, but the key point about new issuance is that it happens in the primary market, not in an ongoing trading venue like OTC.